It is fundamental to take advantage of your money, or your money will undoubtedly take advantage of you.
Follow this link to Sharebuilder and get $25 bucks for investing right now
David Bach talks about Credit Cards <--click link
Just had to put this in here somewhere, who else better to take advice from on credit cards... maybe Suze Orman? I think I'd prefer David Bach personally. - Five credit cards is too many
Bach introduced me to the Latte Factor from his Millionaire Mind Book; so I took it to heart and began abiding by the Latte Life. That is: if you're going to cut out your Latte's to save money, heck why not just cut out everything you don't need. And thus we have the Jars system.. I still have difficulty implementing, but I like the idea.. see the Jars here. |
10% Average Annual Return - Are you Nuts!?
Many doubt the possibility of averaging a 10% return. Matt Krantz explains, follow the link and read the column by USA Today.
Let's do a little research on the S&P 500 shall we?
This is an important concept to grasp, and can be applied to any fund.
Here's the link to the Standard & Poor's page. You can get this index from S&P; I've attached it here for download.
Looking at this document you can see the price close at the end of each year. And across from that you can also see the total return. The total return simply includes the dividend component and the percent change.
Take a moment to look over these cells and you can see how the value is obtained. You can use this same formula setup; without modifying the formulas. If you were to go to say Morningstar for example you can use their interactive graph > set it to 10yr viewing, or whatever the max is; hover over the last month of each year and fill out your excel sheet with the close price for each year. The more close prices you enter you can create a better average for you annual return. |
How do I calculate my return on investment?
Let's say you have an investment - a stock or a mutual fund and you want to know what your annual return is exactly for that investment.
So if you bought $950 worth of stock, and there was a fee involved of $50 (include everything you paid to get that stock); your total would come to $1000 bucks. A year after you invested in the stock, what happened? How did your investment adjust (up, or down). Let's say your investment of $1000 grew to $1200 a year later. You've obviously profited $200 bucks. To calculate your ROI you simply divide your profit by your total investment: $200/$1000. On a calculator you'll see 0.2 to turn that decimal into a percentage, move the decimal 2 places to the right, which comes out to 20% Kiplinger's Top 25 Funds
Not sure exactly what to invest in? Take a look at The Kiplinger 25.
|
Navy Federal Credit Union
get bank routing numbers here: routingnumbers.org Primerica TSP Sharebuilder Paypal Prosper eTrade myPay American Funds TheStreet.com
Check out TheStreet.com's Rating pdf documents for a specific stock/investment; A perfect read for researching a stock, also available from Advantage membership of ING |
|
use Sharebuilder's Rating System or MSN StockScouter to find the value of a stock.
13 Steps to Investing Change Your Life With One Calculation |